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HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2180

 

The Commonwealth of Massachusetts

 

________________________________________

 

Senate, June 6, 2014.

BILL #:  H4111

BILL STATUS:  Favorable with Amendment

DISSENTERS:

None

ACCOMPANIED BILLS:

None

For the committee,

BRIAN A. JOYCE


SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2180

The committee on Bonding, Capital Expenditures and State Assets, to whom was referred the House Bill relative to the expansion of the Boston Convention and Exhibition Center (House, No. 4111); reports, recommending that the same ought to pass with an amendment striking out all after the enacting clause and inserting in place thereof the text of Senate document numbered 2180.

 

The Commonwealth of Massachusetts

 

_______________

In the Year Two Thousand Fourteen

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              SECTION 1. It is hereby found and declared that the Boston convention and exhibition center is not of sufficient size to attract and accommodate large national and international groups who wish to conduct conventions, exhibitions and other similar events within the commonwealth that are beneficial to the economic development of the commonwealth and the general welfare of its citizens. The commonwealth is losing substantial business from events that the Boston convention and exhibition center cannot accommodate thereby losing accompanying economic benefits. It is further found and declared that there is satisfactory evidence that a substantial number of national and international conventions would locate their activities within the commonwealth if the Boston convention and exhibition center is expanded and that such expansion would continue to grow the commonwealth’s presence in the convention and meeting industry putting the commonwealth at a competitive advantage resulting in more jobs, revenue and economic growth benefitting the entire commonwealth.

              It is further found and declared that by attracting visitors to the commonwealth through the expansion of the Boston convention and exhibition center, it is expected that substantial economic activity will be stimulated in such tourism-related industries as hotels, restaurants, recreation, entertainment and retail sales. Stimulation of these industries will continue to promote the overall economic development of the commonwealth and will provide new and enhanced employment opportunities. Expansion of the Boston convention and exhibition center also would enable the city of Boston and the commonwealth to have an enhanced presence in the national and international convention and meeting marketplace and would leverage events to support the commonwealth’s other economic sectors including life sciences, medical, high tech and education. 

              It is further found and declared that the expansion of the Boston convention and exhibition center and the expenditure of public funds for such purpose as provided in this act are in furtherance of a public purpose and in the best interests of the commonwealth. Such expansion was contemplated by the General Court when the Boston convention and exhibition center was originally authorized, as evidenced by the acquisition of land for such expansion and the design of the Boston convention and exhibition center to accommodate such expansion.

              SECTION 2. To provide for the expansion of the Boston convention and exhibition center, the sum set forth in this section is hereby made available, subject to the provisions of law regulating the disbursements of public funds and the approval thereof.

                            EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE

              0101-0101  For the BCEC expansion project as defined in section 8; provided that amounts expended from this item shall be for the planning, development, construction and related costs of the BCEC expansion project in accordance with the provisions of section 11; and provided, further, that an amount not less than $50,000,000 nor more than $75,000,000 shall be available for use to assist in certain transportation projects, benefitting or related to the BCEC Expansion Project including the relocation of existing MassDOT facilities located on the expansion site and costs related thereto, and the transfer of land from MassDOT to the MCCA for truck marshalling purposes, and including an amount not to exceed $15,000,000 for the design and construction of a rail station project on the west side of the BCEC that would facilitate direct public transportation access through diesel multiple unit (DMU) vehicles, but only if MassDOT  activates  track 61 for that purpose; and provided, further, that the funds authorized by this item shall be expended only in accordance with the conditions provided in section 10(c) ………………………$1,000,000,000

              SECTION 3. The Massachusetts Convention Center Authority shall comply with section 27H of chapter 149 of the General Laws, provided however that security guard services are also provided with prevailing wage.

              SECTION 4. Subsection (e) of section 35 of said chapter 190 is hereby amended by inserting after the word “functions”, in line 3, the following words:-

              Such contracts and agreements may include, without limiting the foregoing, partnership agreements including limited partnership agreements, joint ventures, participation agreements or equity investments. For the purposes of this subsection, “equity investments” shall mean shares in private entities, whether or not transferable or denominated stock, or interest of a limited partner in a limited partnership or membership interest in a limited liability company.   With respect only to any contract or agreement authorized by the preceding two sentences, any documentary materials or data whatsoever made or received by a member or employee of the Authority and consisting of, or to the extent that such materials or data consist of, trade secrets or commercial or financial information regarding the operation of any business conducted by any private entity under contract with the Authority or regarding the competitive  position of such private entity in a particular field of endeavor shall not be deemed public records of the Authority and shall not be subject to section 10 of chapter 66 of the General Laws.  Notwithstanding section 20 of chapter 30A of the General Laws, any discussion or consideration of such trade secrets or commercial or financial information may be held by members of the Authority in executive sessions closed to the public, but the purpose of any such executive session shall be set forth in the official minutes of the Authority and no business which is not directly related to such purpose shall be transacted nor shall any vote be taken during such executive session.

              SECTION 5. As used in this act, the following words shall have the following meanings, unless the context clearly requires otherwise:

              “Authority”, the Massachusetts Convention Center Authority, established pursuant to section 33 of chapter 190 of the acts of 1982, or, if said Authority shall be abolished, the board, body or commission succeeding to the principal functions thereof or to whom the powers given by this act to said Authority shall be given by law.

              “BCEC expansion project”, the planning, design, acquisition, development, construction, expansion, rehabilitation, improvement, furnishing, equipping and finishing or any combination of the foregoing within the convention center development area of an approximately 1,300,000 square foot expansion to the Boston convention and exhibition center containing approximately 335,000 square feet of additional contiguous exhibition space and attendant meeting rooms, lecture rooms, ballrooms, multi-purpose space and related common areas for public circulation, service and support, together with all necessary and related furnishings, furniture, machinery, equipment, facilities, approaches, driveways, walkways, roadways, planting and landscaping associated therewith; the acquisition by the Authority in accordance with section 212 of chapter 139 of the acts of 2012 and this act, of lands and other property, or rights, air rights, sub-surface rights, easements, leases, ground leases and other interests in respect of lands and other property, adjacent to or within the general vicinity of the convention center development area to provide for parking facilities, truck marshalling areas and as sites for other facilities supporting the Boston convention and exhibition center, including without limitation, facilities constructed by lessees of the Authority and others to provide services or accommodations for the public within the BCEC Hotel Zone as defined in section 211 of chapter 139 of the acts of 2012 or where otherwise authorized or permitted by law; the demolition or removal of any buildings or structures within the convention center development area or on such lands or other property or interests therein so acquired, and site preparation, permitting and environmental remediation thereof; and the planning, design, acquisition, development, construction, equipping and finishing or any combination of the foregoing on a portion of such lands or other property or interests therein so acquired of 1 or more parking garages for persons presenting at or attending the Boston convention and exhibition center, or utilizing such public accommodations, and other members of the general public; and measures mitigating the local impact of the foregoing; in each case of a scale and scope generally consistent with the description thereof contained in the BCEC expansion project report.

              “BCEC expansion project report”, the report, feasibility study and program pertaining to the BCEC expansion project delivered to the clerks of the senate and the house of representatives and the senate and house committees on ways and means on on November 19, 2013 in accordance with section 38N of chapter 190 of the acts of 1982.

              “Boston convention and exhibition center”, the convention and exhibition center and related facilities so called, and all real and personal property associated therewith, owned and operated by the Authority within the convention center development area and acquired, developed, constructed, improved, furnished, equipped and otherwise carried out in accordance with section 5 of chapter 152 of the acts of 1997. Whenever appropriate, such term shall also mean such convention and exhibition center as expanded in accordance with this act.

              “City”, the city of Boston.

              “Convention center development area”, the area within the city of Boston bounded and described as follows: beginning at the intersection of the eastern boundary of the South Boston Bypass Road, and the southern boundary of Summer Street, thence easterly along the southern boundary of Summer Street to the intersection of the western boundary of D Street, then southerly along the western boundary of D Street to the centerline of Cypher Street, then westerly along the centerline of Cypher Street with a line extended to the eastern boundary of the South Boston Bypass Road, and then northerly along the eastern boundary of the South Boston Bypass Road to the point of beginning.

              “Convention center fund”, the Convention and Exhibition Fund established by section 10 of chapter 152 of the acts of 1997.

              “Cost”, as applied to the BCEC expansion project, all costs, whenever incurred, including without limitation reimbursement to the convention center fund of any such costs heretofore funded from amounts applied to such purposes pursuant to section 212 of chapter 139 of the acts of 2012 and subsection (c) of section 10 of chapter 152 of the acts of 1997 of acquiring, developing, constructing, improving, furnishing, equipping, finishing and carrying out the BCEC expansion project, including without limiting the generality of the foregoing, the costs of all labor, materials, machinery and equipment necessary to carry out the BCEC expansion project, the costs of all lands and other property, and all rights, air rights, sub-surface rights, easements, leases, ground leases and other interests in lands and other property, acquired by the Authority in connection with the BCEC expansion project and costs of environmental investigation and analyses and remediation, site preparation and other development costs thereof and of the facilities constructed thereon, the costs of permitting, inspection and licensure and of measures mitigating the local impact of the BCEC expansion project, the costs of demolition and removal of any buildings or structures within the convention center development area or on such lands, property, rights and interests so acquired and removal or relocation of any public utilities and other facilities thereon, the costs of architectural, engineering and legal services, plans, specifications, surveys, estimates of cost and of revenues, including without limitation, the BCEC expansion project report, other expenses necessary or incident to determining the feasibility or practicability of the BCEC expansion project, administrative, marketing and promotion expenses, and financing charges, interest prior to and during construction and for a period not exceeding 2 years after completion of construction, reserves for debt service, and such other capital and current expenses as may be necessary or incident to the construction or acquisition of the BCEC expansion project, the financing thereof and the issuance of bonds or notes by the commonwealth pursuant to the provisions of this act.

              “Minority business enterprise” or “MBE” shall have the same meaning as found in section 6 of chapter 7C of the General Laws;

              “Women business enterprise” or “WBE” shall have the same meaning as found in section 6 of chapter 7C of the General Laws;

              “Service-disabled veterans –owned small business enterprise” or “SDVOBE” shall have the same meaning as found in section 61 of Chapter 7 of the General Laws.

              SECTION 6. (a) The Authority may acquire, develop, lease, construct, improve, furnish, equip, finish and otherwise carry out the BCEC expansion project, and to own, operate, lease, sub-lease, license, promote, maintain, improve and rehabilitate the same, either directly or indirectly in whole or in part through agents, lessees, contractors, concessionaires or others, subject to the provisions of this act.

              (b)  The Authority may acquire such lands, properties, rights, air rights, sub-surface rights, easements, leases, ground leases and other interests identified in the BCEC expansion project report as the Authority deems necessary, appropriate or convenient to carry out the purposes of this act. To carry out and effectuate the foregoing purposes, the Authority may acquire by purchase, lease, gift, bequest, grant or otherwise from any party, public or private, and hold, clear, repair, operate, lease and convey, any lands and other property, real or personal, improved or unimproved, tangible or intangible, and any interest therein, including, to the extent not inconsistent with federal law, railroad properties. To the extent not inconsistent with federal law, the acquisition by the Authority of railroad rights-of-way or related facilities as aforesaid from any department, authority, agency or political subdivision of the commonwealth, from any railroad company, or from any other party, shall be exempt from the procedures, findings and requirements of section 7 of chapter 161C of the General Laws, and the issuance of any permit for any portion of the BCEC expansion project or for facilities constructed by lessees of the Authority and others as a part thereof on any lands formerly used as a railroad right-of-way or any property appurtenant thereto formerly used by any railroad company in the commonwealth shall be exempt from the provisions of section 54A of chapter 40 of the General Laws.

              (c) Notwithstanding the provisions of any general or special law, rule or regulation to the contrary, the commissioner of public safety or his designee in the division of inspection of the department of public safety shall be solely responsible for inspection, enforcement, permitting and licensure of the BCEC expansion project authorized or required by chapter 143 of the General Laws or section 21 of chapter 40 of the General Laws and regulations referred to therein or adopted pursuant thereto. The BCEC expansion project shall be exempt from compliance with the city’s zoning code and any regulations promulgated thereunder; provided, however, the Authority shall subject the BCEC expansion project to large project review as set forth in subsections 1-5 of section 80B-3 of the city’s zoning code.

              (d) The Authority may prepare or cause to be prepared a report regarding the BCEC expansion project in accordance with section 62B of chapter 30 of the General Laws.; provided however, notwithstanding the provisions of sections 62 to 62H, inclusive, of said chapter 30, the Authority may commence and undertake research, planning, design and other work necessary for the BCEC expansion project and may engage an owner’s project manager, architects and engineers and a construction manager therefor as provided in section 10 of this act, and may take all actions necessary or appropriate or required for acquisition of lands or other property, rights, air rights, sub-surface rights, easements, leases, ground leases and other interests as provided in this section, prior to the publication of a final environmental impact report pursuant to this section and section 62C of said chapter 30.

              SECTION 7. (a) In undertaking the BCEC expansion project, the Authority shall establish: (i) a supplier diversity program designed and implemented to achieve meaningful participation on the part of minority business enterprises, service-disabled veteran-owned small business enterprises and women business enterprises in all phases of the management and oversight, design and construction of the BCEC expansion project and which incorporates the provisions of this subsection and clause (iii) of subsection (c); (ii) a workforce diversity program designed and implemented to achieve meaningful participation of Boston residents, minority persons and women as construction employees pursuant to clause (ii) of subsection (c); and (iii) a construction workforce training program designed and implemented to provide access and training to those traditionally under-represented in the construction trades, including minority persons and women.  The Authority shall engage  an owner’s project management team for the BCEC expansion project in accordance with the manner of selecting an owner’s project manager pursuant to section 44A1/2 of chapter 149 of the General Laws. In selecting an owner’s project management team, the Authority shall establish a selection process that encourages the participation of a minority business enterprise, a service-disabled veteran-owned small business enterprises  or a women businesses enterprise as part of the owner’s project management team. The owner’s project management team will serve as the Authority’s agent and consultant during the planning, design and construction of the BCEC expansion project. The Authority shall select architects and other design professionals for the BCEC expansion project in accordance with the procedures approved by the designer selection board of the executive office for administration and finance; provided, that prior to and in the selection of said architects and design professionals, the Authority shall adopt participation goals that provide for the meaningful participation of minority business enterprises,  service-disabled veteran-owned small business enterprises and women business enterprises as architects and design professionals; provided further , that said participation goals shall be equal to the combined participation goals for minority business enterprises and women business enterprises on design projects as established by the division of capital asset management and maintenance pursuant to section 6 of chapter 7C  of the General Laws and in effect as of January 1, 2013.

              (b) Notwithstanding any general or special law to the contrary, the Authority shall utilize the construction manager at risk approach in construction of the BCEC expansion project as provided in subsections (f) and (g) of section 5 of  chapter 152 of the acts of 1997 and shall select trade contractors for the BCEC expansion project as provided in said subsection (h) of said section 5, and in each case in accordance with the procedures previously adopted by the Authority for construction of the Boston convention and exhibition center in consultation with the commissioner of capital asset management and maintenance and with the review and approval of the inspector general of the commonwealth pursuant to subsections (b) and (f) of said section 5; provided, that: (i) the responsibilities assigned to a technical advisory board in said subsection (f) of said section 5 shall be performed by a selection committee appointed by the Authority which, in consultation with the Authority, shall determine the procedures to be applied in selection of a construction manager for the BCEC expansion project;  and (ii) the decisions of such selection committee, and the decisions of the trade contractor prequalification committee appointed by the Authority in accordance with said subsection (h) of said section 5, shall be final and not subject to appeal except on grounds of fraud or collusion. The Authority shall consult with the division of capital asset management and maintenance and the inspector general with respect to any modifications to the procedures for selection of a construction manager or the procedures for selection of trade contractors as previously adopted and utilized for the construction of the Boston convention and exhibition center pursuant to said section 5; provided, however, that the division of capital asset management and maintenance shall otherwise have no jurisdiction over the BCEC expansion project. The Authority shall submit to the inspector general of the commonwealth a proposed procurement plan for the advertising, procurement, bidding and awarding of contracts for the lease of land and construction of facilities by lessees of the authority and others to provide hotel accommodations of between twelve-hundred and fifteen-hundred additional hotel rooms within the BCEC Hotel Zone under up to a 99-year lease.  Said procurement plan shall include a two-stage procurement process comprised of a qualification stage resulting in the selection of at least three qualified proposers to participate in a second and final RFP stage.  Said plan shall set forth all requirements necessary for development entities and hotel operators to qualify for final contract award, including but not limited to project financing experience, project ownership experience, hotel operating experience, financial condition, and commitment to minority‐owned, service disabled veteran, and women‐owned business inclusion. Said plan shall provide for a second and final RFP stage requiring proposers to submit project designs and financial proposals including construction, base, and percentage rent in a manner set forth in the RFP that will allow the net present value of financial proposals to be computed and compared in a manner precisely specified in the RFP.  The procurement plan shall provide for the contract to be awarded to the proposal that offers the highest net present value as set forth in the RFP, unless a contrary award is deemed in the best interest of the taxpayers through an express written finding of the Inspector General.  The procurement plan shall include no form of public subsidy and the resultant contract shall include no form of public subsidy, excepting a below market ground rent or any incentives offered by the city of Boston, unless otherwise authorized by an act of the general court. Upon review and approval of the inspector general of the commonwealth, the Authority is authorized to utilize said procurement plan for the purposes set forth in this section for the lease of land and construction of hotel facilities.

              (c) Except as otherwise agreed to between the Authority and the construction manager, all contracts for the provision of labor, material and equipment in connection with the construction of the BCEC expansion project shall be entered into by and between the construction manager and the trade contractor as provided in subsection (h) of section 5 of chapter 152 of the acts of 1997;, provided, that the purchase of tangible personal property and services for the BCEC expansion project by the construction manager and by trade contractors shall be exempt from the excise imposed by chapter 64H of the General Laws.  The provisions set forth in said subsection (h) of said section 5 pertaining to construction employees shall also apply to the BCEC expansion project. The provisions of sections 26 to 27F, inclusive, and section 29 of chapter 149 of the General Laws shall apply to the contract between the Authority and the construction manager and all trade contracts awarded pursuant to this section, and in undertaking the BCEC expansion project: (i) all construction employees employed in the construction of the BCEC expansion project shall be paid no less than the wage rate established for such work pursuant to a project labor agreement with the appropriate labor organization or labor organizations, which includes a uniform grievance and arbitration procedure for the resolution of work-related disputes on job sites, mutually agreeable uniform work rules and schedules for the project, and an obligation for any labor organization and its constituent members contracted to work on the BCEC expansion project not to strike with respect to work on such project; provided, that it shall not be a precondition to the award of a contract that a bidder have previously entered into a collective bargaining agreement with a labor organization, but only that the bidder be willing to execute and comply with said project labor agreement for the BCEC expansion project if it is awarded a contract;  (ii) pursuant to the workforce diversity program established pursuant to subsection (a), the Authority shall establish employment goals that provide for the participation of Boston residents, minority persons, and women as construction employees in accordance with the Boston Residents Construction Employment Standards established pursuant to the city of Boston code, ordinances, section 12-10; (iii) pursuant to the supplier diversity program established pursuant to subsection (a), the Authority shall adopt contractor participation goals that provide for the meaningful participation of minority business enterprises and women business enterprises as construction contractors; provided further, that said participation goals shall be equal to the combined participation goals for minority business enterprises, service-disabled veteran-owned small business enterprises, and women business enterprises on public building projects as established by the division of capital asset management and maintenance pursuant to section 6 of chapter 7C of the General laws and in effect on January 1, 2013; and (iv) pursuant to the workforce training program established pursuant to subsection (a), the Authority shall develop and implement a program that provides training in construction-related trades to minority persons and women. 

              (d) Notwithstanding the provisions of subsection (b), the Authority may, by majority vote of its members, elect to use other methods provided under any general or special law for procuring design or construction services for portions of the BCEC expansion project, including the provisions of section 39M of chapter 30 of the General Laws, the provisions of section 44A to 44M, inclusive, of chapter 149 of the General Laws, or the provisions of chapter 149A of the General Laws; provided, that the provisions of subsections (a) and (c) shall apply to the BCEC expansion project regardless of the method utilized for procuring construction contracts.  If the Authority elects to apply the provisions of said chapter 149A to a portion of the BCEC expansion project, the Authority shall be deemed to be an exempt agency within the meaning of subsection (d) of section 4of said chapter 149A.

              (e) In implementing the BCEC expansion project, the Authority shall prepare monthly reports which shall include, but not be limited to: (i) the total dollars expended on the BCEC expansion project to date; (ii) the number and type of contracts entered into to date; (iii) the number of contracts entered into with minority business enterprises; (iv) the number of contracts entered into with service-disabled veteran-owned small business enterprises; (v) the number of contracts entered into with women business enterprises ; (vi) the dollar value of contracts entered into with minority business enterprises; (vii) the dollar value of contracts entered into with service-disabled veteran-owned small enterprises; (viii) the dollar value of contracts entered into with women business enterprises; (ix) the total number of employees working on the project; (x) the total number of employees working on the project, broken down by race, ethnicity and gender; (xi) the total number of Boston residents working on the project. Said reports shall be submitted to the secretary of the executive office for administration and finance, the house and senate committees on ways and means, the clerks of the houseand senate, and the house committee on bonding, capital expenditures and state assets; and (xii) the total number of hours worked on the project broken down by race, ethnicity and gender.  The Authority shall post each quarterly report on its website.

              (f) The Authority shall establish a monitoring committee, to be known as the access and opportunity committee, which shall meet quarterly, in a forum open to the public, to review the Authority’s reports issued pursuant to subsection (e)of this section, monitor compliance with the provisions of subsections (a) and (c), and make recommendations to the Authority regarding the successful implementation of the supplier diversity program and workforce diversity program established pursuant to subsection (a).  The Authority, in establishing the access and opportunity committee, shall ensure representation from, but not limited to, a representative of the construction manager for the BCEC project, a representative of the owner’s project management team, representatives of the trade contractors performing work on the BCEC expansion project, a representative of the Massachusetts Minority Contractors Association, Inc., a representative of the Massachusetts Supplier Diversity Office, a representative of the Massachusetts Office of Access and Opportunities, a representative of the Veteran’s Business Council, the city councilor representing district 2 of the Boston city council or his designee, the state representative representing the fourth Suffolk district or his designee, the state senator representing the first Suffolk district or his designee, and representatives of  local, community-based organizations.

              SECTION 8: In the design and construction of the BCEC Expansion Project, the Authority shall achieve a minimum certification of “LEED Silver – New Construction” from the United States Green Building Council or equivalent certification from a similarly recognized organization issuing certification for compliance with environmental and sustainability guidelines for design and construction. In said design and construction, the Authority shall comply with the energy efficiency requirements of either:  (1) the “Stretch Energy Code” so-called, as defined by the eighth edition of the Commonwealth of Massachusetts State Building Code, 780 CMR, (2) or the Massachusetts energy code in effect at the time of the application for building permit, whichever is more stringent.   In the building operations and maintenance of BCEC structures constructed pursuant to Chapter 152 of the Acts of 1997, the Authority shall achieve a minimum certification of “LEED Silver - Existing Buildings” from the United States Green Building Council or equivalent certification from a similarly recognized organization issuing certification for compliance with environmental and sustainability guidelines for building operations and maintenance. In said building operations and maintenance, the Authority shall comply with the energy efficiency requirements of either:  (1) the “Stretch Energy Code” so-called, as defined by the eighth edition of the Commonwealth of Massachusetts State Building Code, 780 CMR, (2) or the Massachusetts energy code in effect at the time of the application for building permit, whichever is more stringent.  

              SECTION 9. (a) To meet the expenditures necessary to carry out the provisions of section 2, the state treasurer, upon request of the governor, may issue and sell bonds of the commonwealth in an amount to be specified by the governor from time to time, but not exceeding, in the aggregate, the sum of $1,000,000,000; provided however that the state treasurer may issue and sell additional bonds for up to 10% of the bonded amount for the costs of issuance and to establish a debt service reserve fund, if in the opinion of the state treasurer such fund would increase the marketability of the bonds. All such bonds shall be special obligations of the commonwealth payable from the special receipts described in section 10 of chapter 152 of the acts of 1997 to the extent available and in any case payable solely from moneys credited to the convention center fund or otherwise pledged to such payment as provided in said section 10 and this act. Notwithstanding section 60A of chapter 29 of the General Laws  or any other general or special law to the contrary, such bonds shall not be general obligations of the commonwealth. Such bonds shall be issued for such maximum term of years, not exceeding 30 years, as the governor may recommend to the general court in accordance with section 3 of Article LXII of the Amendments to the Constitution, but all such bonds shall be payable not later than June 30, 2060.

              (b) Bonds of the commonwealth may be issued under authority of this section in such manner and on such terms and conditions as the state treasurer, with the concurrence of the secretary of administration and finance, may determine in accordance with the provisions of this subsection and, to the extent not inconsistent with the provisions hereof, general law relative to  the issuance of bonds of the commonwealth. The provisions of section 11 of chapter 152 of the acts of 1997, including without limitation the Capital Reserve Fund established pursuant to said section 11, shall apply to such bonds and the security therefor to the same extent as such provisions apply to bonds of the commonwealth outstanding under said section 11; provided, that if so determined by the state treasurer, with the concurrence of the secretary of administration and finance, bonds issued under authority of this act may be issued on a parity with or subordinate to such outstanding bonds, and, if subordinate, with or without the benefit of the capital reserve fund. Earnings on investment of the proceeds of such bonds and on the proceeds of notes issued pursuant to section 12 shall be deposited in the convention center fund and applied to the purposes set forth in subsection (c) of section 10of said chapter 152.

              (c) As additional security for bonds of the commonwealth issued under authority of this section, the convention center fund, and all amounts on deposit from time to time therein, are hereby pledged to the payment of such bonds and, if so determined by the state treasurer with the concurrence of the secretary of administration and finance, to the payment of bonds outstanding under section 11 of chapter 152 of the acts of 1997, subject to the application of such amounts as provided in subsection (c) of section 10 of said chapter 152 and the trust agreement for such bonds. In order to further increase the marketability of such bonds, the commonwealth, if so determined by the state treasurer with the concurrence of the secretary of  administration and finance, is hereby authorized to pledge all or any portion of the receipts from the excises imposed by section 3 of chapter 64G of the General Laws and section 22 of chapter 546 of the acts of 1969 upon the transfer of any room that are not otherwise deposited in the convention center fund pursuant to said section 10 of said chapter 152, or any other applicable law, as “additional pledged receipts” to further secure such bonds.  Additional pledged receipts shall be included as “special receipts”, as defined in subsection (b) of section 10 of chapter 152 of the acts of 1997, as amended, but only to the extent and as provided in the trust agreement for such bonds, and shall be thereafter applied in each fiscal year, subject to the terms of the trust agreement pursuant to which such bonds are issued, first, for purposes of paying debt service on such bonds or to the maintenance of the Capital Reserve Fund for such bonds established pursuant to subsection (c) of said section 11of said chapter 152 and second, as otherwise provided by law. 

              (d) Any bonds issued under authority of this section, and any notes of the commonwealth issued in anticipation thereof as hereinafter provided, shall be deemed to be investment securities under chapter 106 of the General Laws, shall be securities in which any public officer, fiduciary, insurance company, financial institution or investment company may properly invest funds and shall be securities which may be deposited with any public custodian for any purpose for which the deposit of bonds is authorized by law. Any such bonds and notes, their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be free from taxation within the commonwealth.

              SECTION 10. The state treasurer may borrow, from time to time, on the credit of the commonwealth such sums of money as may be necessary for the purposes of meeting payments as authorized by section 2 in anticipation of the receipt of proceeds of special obligation bonds of the commonwealth issued under authority of section 11, and may issue and renew, from time to time, notes of the commonwealth therefor, bearing interest payable at such time and at such rate as shall be fixed by the state treasurer. Such notes shall be issued and may be renewed 1 or more times for such maximum term of years, not exceeding 5 years, as the governor may recommend to the general court in accordance with section 3 of Article LXII of the Amendments to the Constitution; provided, however, that all such notes shall be payable not later than June 30, 2020.  All interest on account of the principal of such notes shall be payable from the convention center fund.  Notwithstanding any provision of this act to the contrary, notes and the interest thereon issued under the authority of this section,  shall be general obligations of the commonwealth.

              SECTION 11. Notwithstanding clause (v) of subsection (c) of section 10 of chapter 152 of the acts of 1997 amounts held in the convention center fund that are determined by the state treasurer and the secretary of administration and finance to exceed the amount necessary to satisfy the sufficiency of such fund may be applied to defray the net cost of operations of the Authority, as defined in section 32 of chapter 190 of the acts of 1982, as amended, in an amount in fiscal year 2015 not exceeding $24,000,000, in fiscal year 2016 not exceeding $25,000,000, in fiscal year 2017 not exceeding $26,000,000 and an amount not exceeding $28,000,000 in fiscal year 2018 and in each fiscal year thereafter.

              SECTION 12. The provisions of this act shall be deemed to provide an exclusive, additional, alternative and complete method for anything authorized herein and shall be deemed and construed to be supplemental and additional to, and not in derogation of, powers conferred upon the Authority; provided, however, that insofar as the provisions of this act are inconsistent with the provisions of any general or special law, administrative order or regulation or any limitation imposed by a corporate or municipal charter, the provisions of this act shall be controlling.

              SECTION 13.  If, at any time, additional pledged receipts, as defined in subsection (c) of section 11,  are applied to pay debt service on bonds issued under the authority of section 11 or, if applicable, bonds outstanding under section 11 of chapter 152 of the acts of 1997 or to the maintenance of the Capital Reserve Fund created under said chapter 152, the convention centers excise shall be increased, in the city of Boston only, until the amount deposited into the convention center fund from the increased excises shall be at least equal to the amount of additional pledged receipts so applied to pay debt service or to the maintenance of the Capital Reserve Fund, as so certified by the secretary of administration and finance; provided, however, that in no event shall the total amount of the excise imposed pursuant to sections 3 and 3A of chapter 64G of the General Laws and section 22 of chapter 546 of the acts of 1969 exceed 14 per cent.  Amounts so received from the increased excises arising from the use of additional pledged receipts shall, subject to the terms of the trust agreement pursuant to which such bonds are issued and to the use of such moneys for the purpose set forth in  section 2 of this act, without further appropriation, be transferred, as of the end of each fiscal year, to the General Fund.

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